internship on financial analysis of dbbl

CHAPTER 01

INTRODUCTION

1.1 INTRODUCTION:

Finance is the life blood of trade, commerce & industry. Now-a-days, bank money acts as the backbone of modern business. Development of any country mainly depends upon the banking system.

The term bank is derived from the French word Banco while means a Bench or Money exchange table. In olden days, European money lenders or money changers used to display (show) coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchanging.

A bank is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposits & it lends money to those who need it. Oxford Dictionary defines a bank as “an establishment for custody of money, which it pays out on customer’s order”.

1.2 BACKGROUND OF THE STUDY:

As a part of the internship program of MBA course requirement, I was assigned to do my internship in National Bank Limited at Bhaluka Branch for the period of three months from 15^th September, 2013 to 15^th December, 2013. I have selected a topic “General Banking Activities of National Bank Limited”. While preparing this report, I had a great opportunity to have an in depth knowledge of all the banking activities of National Bank Ltd. The internship program is an integral part of Master of Business Administration (MBA). This program creates a unique opportunity for the student to apply their theoretical knowledge into practice and gain valuable real world business experience. During the program, student can also realize existing business condition a part from having opportunities to solve the problem using various analytical tools.

1.3 OBJECTIVES OF THE STUDY:

The main objective of the internship program is to formalize me with the real market situation & help me learn how bookish concepts are used in the real market.

The broad objective of the report is to analyze the “General banking activities of National Bank Limited”.

The following aspects can be listed as the specific objectives for this practical orientation in National Bank Limited.

Ø  To analyze general banking activities of National Bank Limited.

Ø  To find out the problem of general banking activities of NBL.

Ø  To analyze the reasons for which the growth rate of deposit of a bank increase or decrease day by day.

Ø  To find out how the general banking system of a bank runs.

Ø  To recommend some suggestions for further development of NBL.

1.4 SCOPE & DURATION OF THE STUDY:

In order to maintain the speed of development now Banks must compete in the market place both with local institution as well as foreign ones. The presentation of the organizational structure & policy of National Bank Limited & investigating the strategies applies by it provide the scope of this report. An infrastructure of the organization has been detailed & looks into the future.

Since, the chosen of this internship report is “General Banking Activities of National Bank Limited”. The scope of this report is limited to the overall description of the company, customer service, its position in the industry, account opening section, deposit & clearing etc.

I have got the great opportunity to have an in-depth knowledge of the general banking system of NBL. So this report is mainly focusing on the general banking of National Bank Ltd.

1.5 METHODOLOGY OF THE STUDY:

The report has prepared on general banking system of National Bank Limited. The nature of this report is descriptive. So instead of doing any survey, observation method & interview method are used to complete this qualitative research. I have tried to collect all such information that will reflect the actual situation of the bank for any report. I have collected various types of primary and secondary data while I was performing my internship program. I have collected various data from various sources by face to face interview with the employees working in different departments of National Bank Limited, Bhaluka branch, and maintaining daily diary which contains all the activities that has been observed in the bank.

Population:

The report has prepared on general banking practice system of National Bank Limited. Therefore, for the purpose of the study, all the branches of, National Bank Limited has been considered as the population of the study.

Sampling Unit:

Only one branch of National Bank Limited has been taken as the sampling unit for the study, i.e. Bhaluka branch.

Sampling method:

Not Random sampling method has been used for the purpose of the study.

Sources of data:

The report is based on both primary and secondary sources of information. Interviewing the managers and officers of the bank, talking to the customers, the primary data have been collect. Further more different publications of the bank annual reports and the bank websites have been used for the purpose of collecting secondary data.

        i.            Primary sources of data:

Ø  Practical desk work.

Ø  Opinions and suggestions of bank officials.

Ø  Information conversation with respective officers.

Ø  Direct observation.

Ø  Guidelines & suggestions from general banking in charge of NBL (Bhaluka Branch)

      ii.            Secondary sources of data:

Ø  Annual report of NBL.

Ø  Different text books.

Ø  Web base support from the internet.

Ø  Different files & records of NBL.

Ø  Published booklet of NBL.

Ø  Various published document.

Method of data collection:

For the purpose of the study, two methods of data collection have based:

a) Observation method.

b) Interview method.

Analytical tools and software:

To make the report more understandable and give a nice look, different analytical tools and software, have been used to prepare the report. A number of flowchart, graph, table and different computer software are used.

1.6 LIMITATIONS OF THE STUDY:

Observing & analyzing the broad performance of a bank & one of its branches are not that easy. Moreover due to obvious reasons of scrutiny and confidentiality, the bank personnel usually don’t want to disclose all the information about their organization. Time is another major limitation the duration of the program was three months only and being a temporary member of the organization, it was not possible on my part to notice or express some of the sensitive issues and other aspects.

However the some of the limitations I have face while preparing this Report are listed as follows:

Ø  To complete the study, time was limited by three months. It was really very short time to know details about an organization like National Bank Ltd.

Ø  The employees are extremely busy to perform their duty. Because of the busyness of the busy key persons, necessary data collection became hard.

Ø  NBL website is not much rich to collect data that’s why it makes sometime difficulty to collect information.

Ø  In some cases, they could not be able to supply me any information for the reason that they have no printed documents.

Ø  Office secrecy was one of the most important problems. Disclosing of some information was restricted.

Ø  In case of secondary data collection, there was very little secondary information. There were few support books, reports, journals, etc. moreover, the branch office had very little of this information. That’s why bulk of it had to be collected from the head office.

Ø  As the officers were very busy with their day-to-day work, they could provide very little time.

CHAPTER 02

PROFILE OF THE ORGANIZATION

2.1 BACKGROUND OF THE COMPANY:

National Bank Limited is one of the leading private commercial bank having a spread network of 139 branches & 15 SME/Agri branches (total 154 service locations) across National Bank Limited is one of the leading private commercial bank having a spread network of 139 branches and 15 SME/Agri Branches (total 154 service locations) across Bangladesh and plans to open few more branches to cover the important commercial areas in Dhaka, Chittagong, Sylhet and other areas in 2013.

National Bank Limited has been licensed by the Government of Bangladesh as a Scheduled commercial bank in the private sector in pursuance of the policy of liberalization of banking and financial services and facilities in Bangladesh. In view of the above, the Bank within a period of 29 years of its operation achieved a remarkable success and met up capital adequacy requirement of Bangladesh Bank. National Bank Limited is a customer oriented financial institution. It remains dedicated to meet up with the ever growing expectations of the customer because at National Bank, customer is always at the center. The emergence of National Bank Limited in the private sector was an important event in the Banking arena of Bangladesh. National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the private sector.

The then President of the People's Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha Commercial Area, Dhaka started commercial operation on March 23, 1983. The 2nd Branch was opened on 11th May 1983 at Khatungonj, Chittagong.

Since the very beginning, the bank has exerted much emphasis on overseas operations and handled a sizable quantum of home bound foreign remittance. It has drawing arrangements with 415 correspondents in 75 countries of the world, as well as with 37 overseas Exchange Companies located in 13 countries. NBL was the first domestic bank to establish agency arrangements with the world famous Western Union in order to facilitate quick and safe remittance of the valuable foreign exchanges earned by the expatriate Bangladeshi nationals. This has meant that the expatriates can remit their hard-earned money to the country with much ease, confidence, safety and speed.

2.2 MISSION:

Our mission is to continue our support for expansion of activities at home & abroad by adding new dimensions to our banking services which have been ongoing in an unabated manner. Alongside, we are also putting highest priority in ensuring transparency, account ability, improved clientele service, as well as our commitment to serve the society through which we want to get closer to the people of all strata. Winning an everlasting seat in the hearts of the people as a caring companion in uplifting the national economic standard through continuous up gradation and diversification of our clientele services in line with national and international requirements is the desired goal we want to reach.

2.3 VISION:

The main vision of the National Bank Limited is to develop the economy of Bangladesh by profitable investment of public money and build up their confidence to the private institution. To ensuring highest standard of clientele services through best operation of latest information, technology, making due contribution to the national economy and establishing ourselves firmly at home and abroad as a front ranking bank of the country is our cherished vision.

2.4 BRAND IMAGE:

“A bank for performance with potential” Our prime objective is to uphold the slogan in all activities of the bank.

2.5 GOALS OF THE BANK:

Ø  Develop a realistic deposit mobilization plan.

Ø  Develop appropriate lending risk assessment system.

Ø  Develop capital plan.

Ø  Develop a system to make good advances.

Ø  Develop a recruitment, compensation training and orientation plan.

Ø  Develop a plan for offering better customers service.

Ø  Develop appropriate management structure, systems, procedures and approaches.

Ø  Develop scientific MIS to monitor bank’s activities.

2.6 OBJECTIVES OF THE BANK:

Ø  Build up a low cost fund base.

Ø  Make sound loans and investments.

Ø  Meet capital adequacy requirement at all the time.

Ø  Ensure 100% recovery of all loans and advances.

Ø  Ensure a satisfied workforce.

Ø  Focus on fee-based Income.

Ø  Adopt an appropriate management technology.

Ø   Install a significant MIS to monitor bank’s activities

All these were set during formation stage mainly for the planning purpose. As we know planning is a continuous process, all these needs are to be updated and reset commensuration the need of the time. The main objective of the NBL is to blend in its operation traditional, commercial banking with modern international banking. With the new and varied demands of modern customers, the bank has been pursuing a policy of achieving harmony in transactions between the bank and its customer living up to the high standards of a free market economy.

2.7 BANKING FUNCTIONS:

Ø  To maintain all types of deposit Accounts.

Ø  To make investment.

Ø  To conduct of foreign exchange business.

Ø  To conduct other Banking services.

Ø  To conduct social welfare activities.

Ø  To work for continues business innovation and improvements.

Ø  To bui1d up strong-based capita1ization of the country.

Ø  To ensure the best uses of its creativity, well disciplined, well manages and perfect growth.

Ø Receipts & payment of cash

Ø Handling transfer transactions

Ø Opening of a clearing house

Ø Maintenance of a/c with Bangladesh bank & others banks

Ø Collection of cheques &bills

Ø Issue& payment of DD,TT,PO& online transfer

Ø Maintain a safe deposit lockers

Ø Maintain of internal a/c  of the bank

Ø Savings record of all transaction in computer

Ø Closings &transfer of different types of a/c

Ø Keeping good relation with the valued  customer

Ø  Providing necessary support to the customer  

2.8 BRANCHES OF NATIONAL BANK LIMITED:

2.9 ORGANIZATIONAL STRUCTURE:

 

2.10 FINANCIAL INFORMATION:

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Capital Management of the Bank is to maintain an adequate capital base to support the projected business and regulatory requirement. NBL always maintains a prudent balance between Tier-I and Tier-2 capital. Total capital as on December 31, 2010 was Tk. 19,190.79 million and capital adequacy ratio was 12.29 %. Maintenance of adequate capital enhanced the Bank's single borrower's exposure limit up to a high level to cope with the corporate customers demand.

Deposits (Taka in millions)

The deposit base of the bank registered a growth of 33.37 percent in the reporting year over the last year and stood at Tk.102, 471.83 million. Expansion of branch network, competitive interest rate and deposit products contributed to the growth. The customers of the bank were individuals, corporations, financial institutions, government and autonomous bodies etc.

Import & Export (in millions)

In harmony with earlier years' trend, National Bank Limited was intensely active in international trade during the year 2010. The Bank put forth every possible attempt to expand its external business by establishing LC, undertaking export bill negotiations, realization of export proceeds, foreign remittance etc.

The Bank opened a total 24,775 LCs amounting to USD 1,390.03 million for facilitating import trade in 2010. The main commodities were capital machinery, raw cotton, scrap vessels, rice, wheat, edible oil, petroleum products, yarn, fabrics, garment accessories and other consumer items.

The Bank has been nurturing the export business enthusiastically since its inception. In 2010 it handled 22,135 export documents valuing USD 691.79 million with a growth of 24 percent over the last year's volume of USD 559.78 million. Export finances were extended mainly to readymade garments, knitwear, frozen food and fish, tanned leather, handicraft, tea, jute goods etc.

Net profit after Tax (Taka in millions)

Efficient Board and management, strong capital base, wide branch network, support from other stakeholders helped NBL in revenue earnings and profit maximization. During the period NBL earned an operating profit of Tk. 8,940.60 million in 2010 which was Tk 3,397.50 million in 2009 registering a growth of 163.15 percent. Net Profit after tax grew by 231.34 percent to Tk. 6,860.34 million in 2010 after making provision for loan loss and taxation.

Industrywise loans & advances

National Bank Limited formulated befitting credit risk management criteria and strategies for creation of balanced lending mix in its portfolio both for short and long term with the bottom line objective to ensure risk adjusted rate of return in its credit transactions. Loan and advances in the year 2010 registered an increase by 41.26% to BDT 92,003.56 million from BDT 65,129.29 million in 2009. During the year 2010, the credit expansion mainly was in bilateral project finance, syndicate finance, export, import and trade finance as well as SME and Agri finance. The bank as a matter of policy prioritizes to make lending in the thrust sectors of the economy so as to make distinctive value addition in overall economic uplift of the country.

Remittance (in millions)

National Bank Limited exerted highest emphasis on overseas operation and handling a sizeable quantum of homebound foreign remittance since beginning. By this time, it has earned a reputation as the leader in providing such remittances not only among the customers but also among the regulators. In 1985 the Bank established exchange house with equity ownership and management in Oman. Subsequently many arrangements have been made with different exchange houses and also by establishing subsidiaries abroad for expanding the Bank's overseas network in places with high concentration of Bangladeshi expatriates.

National Bank Limited in 1993 introduced Western Union Money Transfer, a global leader in money transfer services in Bangladesh remained lone agent till 2002. It was a breakthrough in getting prompt payment of foreign remittances by the beneficiaries which encouraged remitters to use legal channel. As a contributor of national economy, NBL is relentlessly working to ease the flow of inward foreign remittance. The bank introduced different products and technology including Online Banking, EFT and other automated devices for uninterrupted speedy payments. Furthermore, NBL entered into a deal with ASA, a leading NGO having 3,000 outlets throughout the country and also with Social Islamic Bank Limited (SIBL) to provide inward remittance products on behalf of NBL. In 2010, foreign remittance brought through NBL was USD 708.67 million with an increase of USD 62.70 million over the previous year showing a growth of 9.70%.

2.11 SWOT ANALYSIS:

Every organization has some strength that helps it to survive, some weakness that push it backward, some opportunities that helps it to compete and also some threats that keeps it aware. NBL also has some SWOT. These are mentioned below:

STRENGTHS:

Ø  NBL is a very competitive organization.

Ø  It is operated by a very efficient management group.

Ø  There is a good employee-employer relationship in its head office and also its all branches.

Ø  It has a healthy dislike of its competitors.

Ø  NBL has sponsored to the top programs, seminars, writing competition and gained valuable coverage.

Ø  In Bangladesh, it has 154 branches to provide services to the people.

Ø  All these branches are located in such place in where customers feel comfortable and safe to make their transaction.

Ø  There are 2529 staffs who work for NBL either in back office or in front office.

Ø  It has a better financial position than others in the banking business.

Ø  It is strong at research and development, as is evidenced by its evolving and innovative product & service range.

Ø  NBL has more social awareness than other banks in Bangladesh right now.

 WEAKNESSES:

Ø  The organization does not have a diversified range of products & services.

Ø  Still the bank is not fully computerized.

Ø  Manual registers are used in some cases.

Ø  However, the income of the business is still heavily dependent upon its share on the retail market.

Ø  It caters less the corporate market than the SCB.

Ø  This may leave it vulnerable if for any reason its market share erodes.

Ø  The retail sector is very price sensitive.

Ø  But it pays very less interest than other banks.

Ø  So, if they found higher interest rate offering by other private banks of Bangladesh then they will lose customers.

Ø  It has less promotion campaign than the other bank, because they believe brand value is the top promoting entity for the company.

OPPERTUNITIES:

Ø  NBL has a goodwill that it provides different banking services to the people with a minimum cost and cut a very little charge on its transactions.

Ø  Although it already has 154 branches to provide services to its customers, it also has the opportunity to build up more branches to make more convenient for the customers.

Ø  The banking business of NBL and its other social activities have increased day by day.

Ø  Sophisticate customer service scheme of the NBL more preferable to customers than other banks.

Ø  Products & services development offers NBL many opportunities.

Ø  There is the opportunity to develop products and services such as insurance business & huge investment in capital market etc.

Ø  Such high value items will tend to have associated with them, high profits.

Ø  There are also global marketing events that can be utilized to support the brand such as the sports & other cultural activities.

THREATS:

Ø  NBL is exposed to the international nature of trade.

Ø  It has to deals in different currencies and so costs and margins are not stable over long periods of time.

Ø  Such an exposure could mean that NBL may be doing banking business at a loss.

Ø  The new technology emerges to protecting the currency value & use options for better credit rate earnings.

Ø  The market for banking sector is very competitive.

Ø  The model developed by NBL to be world’s local bank is now commonly used and to an extent is no longer a basis for sustainable competitive advantage.

Ø  Competitors are developing alternative brands to take away the market share of NBL. The roles and regulation of the government and conventional laws of Bangladesh are also act as threats for the growth of banking business development in Bangladesh.

Ø  As discussed above in weaknesses, the retail banking sector is becoming price competitive.

Ø  This ultimately means that retail consumers are transacting in bank around for a better deal.

Ø  So if NBL charges a comparative high price for a bank account service, or loan rate service, then the customers could go to the other bank to compare fees & charges for the exactly the same services, and will take decision the cheaper of the two.

Ø  Such customer’s price sensitivity is a potential external threat to HSBC.

CHAPTER 03

ANALYSIS & FINDINGS

GENERAL BANKING:

General banking department is the heart of all banking activities. All other departments are linked with this department. It also plays a vital role in deposit mobilization of the branch. National Bank Limited provides different types of accounts, locker facilities, special types of saving scheme and flexibilities of remittance under general banking. The general banking department of National Bank (Bhaluka Branch) consists of the following section:

1. Dispatch section

2. Accounts opening section

3. Cash Management section

4. Remittance section

5. Deposit section

6. Clearing section

7. Credit Card section

10. Accounts section

3.1 DISPATCH SECTION:

Dispatch division operates the function of dispatching the intimation letter to the client, IBCA, IBDA, and OBC to the other banks for internal transaction with bank. The officer engaged in the dispatch division maintains two types of register books to entries for record of these documents particulars. These two types of register books are:

1. Inward mail registers.
2. Outward mail registers.

3.2 ACCOUNTS OPENING SECTION:

Account opening is the first task in the banking sector it is the part of the bank. It is the gate way for customer to enter business with bank. It is foundation of banker & customer relationship. Various rules & regulation are maintained & necessary documents are taken while opening an account.

General procedure of opening account

Step-1	The account holder must have the introducer National certificate or passport or UP certificate Signature card Photographs
Step-2	Bank provides account opening form to the prospective customer or applicant mentioning what types of account is desire to open.
Step-3	Ø  The form is filled up by the account holder himself/herself. Ø  Two copies of color passport size photographs are taken from account holder, in case of partnership offal partners. Ø  Photographs are attested by the introducer Ø  One copy photographs of the nominee which attested by applicant back of the photo. Ø  Applicant must submit required documents Ø  Cheaque requisition from Ø  Introducer signature & account number verified by the authorized officer.
Step-4	Authorized officer accept the application form
Step-5	They issue deposit slip and must be made Minimum balance is deposited
Step-6	Account is opened & MICR cheaque book is given in seven days.

3.3 CASH MANAGEMENT SECTION:

The cash section also manages the vault of the branch. The manager of cash section is the in charge of the necessary liquid money in the vault for the payment of the customer. In this regard, there is specific guideline from the central bank for the limit of the amount such as:

Ø  The bank is required to maintain at least 9% of cash balance with Bangladesh on its total paid up capital.

Ø  Limit of cash vault up to Tk.1.5 Core.

Ø  Limit of a cash counter up to Tk.1.25 Core.

Ø  Limit of cash in transit up to Tk.75lacs.

So the cash department is to maintain a cash limit of Tk.2 Core 45lac as whole. The excess amount of a branch limit is to be proceeded to the account maintained with Bangladesh Bank.

3.4 DEPOSIT SECTION:

Deposit is the lifeblood of a bank. From the history and origin of the banking system, deposit collection is the main function of a bank.

 Our Branch collects two types of deposits, such as:

Ø  Demand deposits

Ø  Time Deposits

Demand deposits:

These sorts of Deposits are payable without any notification. Our branch is collecting the above deposits through the following way:

By opening of;

Ø  Saving account

Ø  Current account

Savings Deposit:

National Bank Limited offers customers a Hassel free and low charges savings account through the branches all over Bangladesh.

Benefits (Condition Apply)

Ø  Interest rate of 4.00% on minimum monthly balance.

Ø  Minimum balance Tk.5000.

Ø  Maintenance charge yearly Tk. 600.

Ø  No hidden costs.

Ø  Standing Instruction Arrangement are available for operating account.

Account Opening

ü  2 copies of recent photograph of account holder.

ü  Nominee's Photograph.

ü  Valid photocopy of Voter ID Card.

Fig: Savings Deposit of NBL (Bhaluka Branch)

Current Deposit:

National Bank Limited offers customers current deposit facility for day-to-day business transaction without any restriction.

Benefits (Condition Apply)

Ø  Minimum balance Tk.2000.

Ø  Minimum maintenance charges half yearly Tk.400.

Ø  No hidden costs.

Ø  Standing Instruction Arrangement are available for operating account.

Ø  Easy access to our other facilities.

Account Opening

ü  2 copies of recent photograph of account holder.

ü  TIN certificate.

ü  Nominee's Photograph.

ü  Valid photocopy of Voter ID Card.

Fig: Current Deposits of NBL (Bhaluka Branch)

Time Deposits:

Time deposits are payable payable at a fixed date or after notification. Our Branch receives Time deposits through fixed deposits receipt (FDR), Short-term deposit (STD), SDS (Special Deposit Scheme) etc.

Fixed Deposits Receipt (FDR):

Fixed deposits (FDR A/C) shall be opened for a longer period such as 3 (three) months to 3 (three) years or more. Generally who wants to invest his money safely can open FDR A/c. The interest of FDR A/c is negotiable & it depends on the volume of deposit and period. At present, our branch is allowing interest from 10.25% to 12.00% in FD A/c. It may be noted that no introduction is necessary to open FDR A/c & The FDR is not negotiable instrument & cannot be transferred by endorsement.

After opening the FDR A/C banker gives a FDR block, which contains the followings information.

ü  FDR A/C no

ü  Name of the FDR A/C holder.

ü  Maturity date.

ü  Maturity period.

ü  Interest rate.

Interest rate on FDR:

The interest rate of the deposited amount depends on duration and volume of the amount. If duration is long the interest rate is high, and at the same time if the volume of amount is large the interest rate is also high and vice-versa.

SL	Period	Rate of Interest
01	01 One Month	12.50%
02	02 Two Month	12.50%
03	03 Three Month	12.50%
04	Above 12 Twelve Month	12.50%

Short-Term-Deposit (STD):

Short-Term-Deposit or STD account Opening procedure is similar to that of the current account. The rate of interest on this type of account is 5%. Withdrawals from this type of account require a prior notice of seven days.

Terms & Conditions	Account Opening
Minimum balance Tk. 2000	3 copies of recent photograph of account holder
Minimum maintenance charge yearly Tk. 800	Nominee's Photograph
Standing Instruction Arrangement are available for operating account	Valid photocopy of Voter ID Card

Various new products for customer offered by NBL:

1)      Monthly Savings Scheme (NMS).

2)      Monthly Income Scheme (MIS).

3)      Millionaire Deposit Scheme (MDS)

4)      Double Benefit Scheme (DBS)

5)      School Banking System (SBS)

Monthly Savings Scheme (NMS):

Ø   Monthly installments of deposit will be Tk.500/-, Tk.1,000/- , Tk.2,000/- ,Tk.3,000, Tk.4000/- , Tk.5,000/- and Tk. 10,0000

Ø   Account may be opened for any installment and term , which is not changeable.

Ø   A person is allowed to open more than one account for different installment in a Branch/ Bank.

Sl. No.	Monthly Installments (Taka)	Amount to be paid on completion of Term
		3(Three) years @9.00%	5(Five) years @9.25%	8(Eight) years @9.50%
01	500/-	20,627/-	37,896/-	70,849/-
02	1,000/-	41,255/-	75,791/-	1,41,691/-
03	2,000/-	82,510/-	1,51,583/-	2,83,394/-
04	3,000/-	1,23,765/-	2,27,374/-	4,25,091/-
05	4,000/-	1,65,020/-	3,03,166/-	5,66,788/-
06	5,000/-	2,06,274/-	3,78,957/-	7,08,485/-
07	10,000/-	4,12,549/-	7,57,914/-	14,16,970/-

Fig: NBL Monthly savings scheme (Bhaluka Branch)

Monthly Income Scheme (MIS):

Under this scheme one will deposit a minimum of tk.1, 00,000/- or its multiple for three years and will enjoy monthly benefit of Tk.1, 000/- for every Tk.1, 00,000/-.

Benefits (Condition Apply)

Ø   Deposit of Tk.1, 00,000/- and its multiple maximum of Tk. 50, 00,000/- shall be acceptable under this scheme.

Ø   The account may be opened either singly or jointly.

Millionaire Deposit Scheme (MDS):

Under this scheme one will deposit a fixed amount on monthly basis for 5, 7 or 10 years and on maturity he/she will be just a millionaire.

Benefits (Condition Apply)

Ø   Deposit of fixed monthly amount for 5, 7 or 10 years. Deposit size will be based on tenure. Upon maturity the depositor will get Tk. 10, 00,000/-.

Ø   A person is allowed to open more than one MIS Account.

Ø   The account may be opened either singly or jointly.

Installment	Tenure	On maturity
12,450/-	5	10,00,000/-
7,870/-	7	10,00,000/-
4,550/-	10	10,00,000/-

Double Benefit Scheme (DBS):

Dreams come true National Bank Limited now offers Double Benefit Scheme for its customers. The benefits under this scheme shall become double after 6 years.

Benefits (Condition Apply)

Ø   Deposit of Tk.50, 000/- and its multiple maximum of Tk. 50, 00,000/- shall be acceptable under this scheme.

Ø   A person is allowed to open more than one DBS Account.

Ø   The account may be opened either singly or jointly.

Ø   All DBS account holder shall be offered with free Life Insurance Policy under this scheme.

Scholl Banking System (SBS):

A student can open an account by deposit tk.10.After 18 years he can draw the money.

RFC Deposit:

National Bank Limited gives opportunity to maintain foreign currency account through its Authorized Dealer Branches Bangladesh nationals residing abroad or foreign nationals residing abroad or Bangladesh and foreign firms operating in Bangladesh or abroad or Foreign missions and their expatriate employees.

Benefits (Condition Apply)

Ø   No initial deposit is required to open the account.

Ø   Interest will be offered 1.75% for US Dollar Account, 3.00 % for EURO Account and 3.25% for GBP Account.

Ø   They will get interest on daily product basis on the credit balance (minimum balance of US$ 1,000/- or GBP 500/- at least for 30 days) maintaining in the account.

NFC Deposit:

National Bank Limited gives opportunity to maintain foreign currency account through its Authorized Dealer Branches. All non – resident Bangladeshi nationals and persons of Bangladesh origin including those having dual nationality and ordinarily residing abroad may maintain interest bearing NFCD Account.

Benefits (Condition Apply)

Ø   NFCD Account can be opened for One month, Three months, Six months and One Year through US Dollar, Pound Starling, Japanese Yen and Euro.

Ø    The initial minimum amount of $1000 or 500 Pound Starling or equivalent other designated currency.

Ø   Interest is paid on the balance maintain in the Account. This interest is tax free in Bangladesh.

3.5 CLEARING SECTION:

Clearing is one of the important jobs of a bank. To run the banking business smoothly and to provide serve to customer, every bank has to collect cheques, POs, Drafts, etc which are drawn on other Bank on behalf of their A/c holder. On the other hand, every Bank has to pay against his A/c holder’s Instrument, which are received from other Banks. In a word, we can say, the bank needs to collect or pay money on behalf of its A/c holder against A/c payee instruments. The process by which way the bank collects or pays the money is called clearing.

Clearing House:

Clearing House is a place where various Banks’ representatives gather with their Clearing Instrument and settle each other’s claims. Normally, clearing house sits in the Central Bank. Where there is no branch of Central Bank, the clearing house sits in a general place selected by the Central Bank. Clearing is held under the supervision of the Central Bank. In our country, Bangladesh Bank controls the clearinghouse. Bangladesh Bank has divided the whole country in various clearing zones such as, Dhaka, Chittagong, Khulna, Barisal etc. Somewhere Somali Bank arranges & controls the clearing house as a representative of Bangladesh Bank.

Every Bank does not get the clearing facility. To avail the clearing facility every bank and its branches need to become a member of the Clearing House.

NBL Tang ail Branch is a member of Clearing House and our clearinghouse sits in Somali Bank. We can do our clearing jobs directly. In clearing house we overtake the instrument to the respective bank & we collect our instrument from others bank.

There are two kinds of Clearing as:

• Outward Clearing
• Inward Clearing

OBC (Outward Bills Collection)

The A/c holders of our Branch deposit other Bank’s instrument in their A/c for collection. We collect it through Outward Clearing and credit the proceeds in their A/c.

On the other hand, the A/c Holder of our Branch gives our Branch’s instrument to their party who is not our A/c holder as payment. The party deposits the following instruments in their A/c for Collection through clearing house. We receive those instruments from Clearing house and make payment on behalf of our A/c holder. This is called Inward Clearing.

IBC (Inward Bills Collection)

We collect the instrument on behalf of our customer through LBC/OBC which is drawn on other Branches of our Bank. Like this collection we also make payment on behalf of our customer against LBC/OBC instrument, which are received from other Branch but drawn on our Branch. For example if any A/c holder of our Branch gives a cheque to his customer who maintains a/c with our Babe Bazar Branch & deposited the Cheque in his A/c. Babe bazaar Branch will send the said Cheque to our Branch through LBC for collection. Receiving of this kind of Instrument called IBC

LBC (Local Bills Collection)

LBC Stands for Local Bills Collection. LBC is a process of collection of instrument, which is held between the two different Branches of the Same Bank in the Same Clearing House. For example, if any A/c holder of our branch deposited a cheque which is drawn on our Babe Bazaar Branch. In this case we will collect the proceeds through LBC.

3.6 CREDIT CARD SECTION:

Through its Credit Card, National Bank Limited has not only initiated a new scheme but also brought a new life style concept in Bangladesh. Now the dangers and the worries of carrying cash money are memories of the past.

Credit Card comes in both local and international forms, giving the client power to buy all over the World. Now enjoy the conveniences and advantages of Credit Card as you step into the new millennium.

Credit Card:

NBL Credit Card is accepted in many merchant outlets around the world. Our wide range of merchants include hotels, restaurants, airlines, & travel agents, shopping malls and departmental stores, hospitals & diagnostic centers, jewelers, electronics & computer shops and many more.

Benefits of credit card:

Ø   Dual Currency Card Facility.

Ø  Lowest Rate of Interest.

Ø  Lowest Card Fees. Special Discount of Card Fee.

Ø  You can transfer 80% amount of your Local Card Limit to any NBL A/c or have Pay Order Facility.

Ø   No Excess Limit Charge & No Hidden Charges.

Credit Card Fees

Type of Card	Card Fee
	Gold		Silver
	Old	New	Old	New
Int’l	$50.00	$35.00	$25.00	$20.00
Local	Tk. 2000	Tk. 1500	Tk. 1200	Tk. 700
Dual		$35.00		$20.00

Type of Card	Late Payment Fees
	Gold		Silver
	Old	New	Old	New
Int’l	$15.00	$10.00	$15.00	$10.00
Local	Tk. 500	Tk. 300	Tk. 350	Tk. 200
Dual		$10.00		$10.00

Type of Card	Card Replacement Fees
	Gold		Silver
	Old	New	Old	New
Int’l	$15.00	$15.00	$15.00	$15.00
Local	Tk. 500	Tk. 500	Tk. 500	Tk. 500
Dual		$15.00		$15.00

Power Card

NBL Power Card is the first debit card for which you don’t have to maintain any account with our any branch.

Benefits (Condition Apply)

Ø  It is a Pre-paid Card.

Ø  Annual / Renewal Fee Tk. 200/- only.

Ø  May be issued and refilled from RFCD/FC Account.

Ø  Accepted at all VISA POS merchants.

Ø  Cash withdrawal at all ATM booths bearing VISA and Q-cash logo (Except HSBC in Bangladesh).

Ø  Drawing of Cash: (i) from NBL ATMs - Free of charges (ii) From ATMs under Q-cash network- Tk.10.00 per transaction (iii) From other ATM - Tk. 100.00 per transaction.

Ø  Cash Withdrawal Fee (aboard)-2.00% on the cash drawn amount or US$2.00, whichever is higher.

Ø  Only 1% loading fee against both International and Local Power Card at the time of Refilling.

Ø  Yearly Tk.100 for enrollment of SMS service.

 Power Card

NBL ATM Services:

National Bank Limited has introduced ATM service to its Customers. The card will enable to save our valued customers from any kind of predicament in emergency situation and time consuming formalities. NBL ATM Card will give our distinguished Clients the opportunity to withdraw cash at any time, even in holidays, 24 hours a day, and 7 days a week. At present NBL have 10 ATM booths at different places.

ATM Locations:

ATM Booth	Division
Satmasjid Road	Dhaka
Uttara	Dhaka
Dilkusha	Dhaka
Gajipur	Dhaka
Malibag	Dhaka
Karwan Bazar	Dhaka
Mymensingh	Mymensingh
Bogora	Bora
Dhaka University	Dhaka
Z.H. Sikder	Dhaka

3.7 ACCOUNTS SECTION:

Accounts Department is play most vital role in Banking. Accounts Department is a department with which each and every department is related. It records the profit & loss A/C and statement of assets and liabilities by applying “Golden Rules” of book-keeping. The functions of it are theoretical & computerized based.

Mainly Accounts Department is not alone. Accounts department is a mix of following three important parts:

1. Cash
2. Transfer
3. Clearing

Cash

Every bank must have a cash counter where customer withdrawn and deposit there money. The cash section of any branch plays very significant role in Accounts Department. Because, it deals with most liquid assets the NBL Tang ail, Branch has a prepared cash section. This section receives cash from depositors and pay cash against cheque, draft, PO, and pay in slip over the counter. When the valued client’s deposit their money at the cash counter they must have to full fill the deposit slip his/her own, then they sing as the depositor option’s then they deposit their money through cash officer at the cash counter.

Different Types of Deposit Slip:

ü  Current Deposit A/C Slip,

ü  Savings Deposit A/C Slip,

ü   Pay order Slip,

ü   Demand Draft Slip,

ü  T.T. Slip.

Receive Cash

Any people who want to deposit money will fill up the deposit slip and give the form along with the money to the cash officer over the counter. The cash officer counts the cash and compares with the figure written in the deposit slip. Then he put his signature on the slip along with the ‘cash received’ seal and records in the cash receive register book.
At the end of the procedure, the cash officer passes the deposit slip to the counter section for posting purpose and delivers duplicate slip to the clients.

Payment of Cash

The drawn who wants to receive money against cheque comes to the deposit counter and presents his cheque to the officer. He verifies the following information through “NBL A to Z” software.

ü Date of the cheque

ü  Signature & photo of the A/C holder

ü  account holder  or bearer cheque

ü  Whether the cheque is crossed or not

ü  Whether the cheque is endorsed or not

ü  Whether the amount in figure and in word correspondent or not

ü If the amount of taka is 100000 or more, then he must be contract with the a/c holder.

ü  Whether there is sufficient balance or not

ü  Whether there is stop payment instruction or not

Transfer

Transfer is not a critical sector in banking but it is very important. Transfers play a vital role in banking sector. So now we have to know what transfer is: basically transfer is a type of register maintaining matter. In this register officer write down every day transactions in Debit and Credit side then the officer calculate both the side of the register if both side shown same amount, it means that the total transactions of the day is completely okay.

NBL Deposit interest rate at a Glance

SL.	Category of Deposit	Revised rate of interest (p.a) i.e. July 01, 2012 (%)
1	Savings	Below 1.00 Crore	4.00
		1 Crore to below 25 Crore	4.50
		25 Crore & above	8.50
		100 Crore & above	9.00
2	Special Notice Deposit	Below 1.00 Crore	4.00
		1 Crore to below 25 Crore	7.00
		25 Crore to below 50 Crore	7.50
		50 Crore to below 100 Crore	7.75
		100 Crore & above	9.00
3	FDR for 1 month & above but less than 3 months	Any amount	10.50
			Up to 12.00
4	FDR for 3 months & above but less than 6 months	Any amount	11.00
			Up to 12.00
5	FDR for 6 months & above but less than 1 year	Any amount	11.00
			Up to 12.00
6	FDR for 1 year & above	Any amount	Up to 12.00

Deposits of NBL

	30/06/2010 TK.	30/06/2011 TK.	30/06/2012 TK.
CD	8,76,11,693.12	6,68,09,125.41	4,66,80,215.56
SB	19,63,61,468.25	27,33,70,505.58	23,32,85,443.71
SND	5,62,91,838.34	7,41,95,172.57	14,77,15,115.32
MSS	2,06,859.00	1,58,433.00	1,86,168.00
NMS	5,35,99,370.00	9,06,60,154.00	12,42,22,378.00
NDS	1,37,00,000.00	1,16,00,000.00	26,00,000.00
MBS	41,50,000.00	1,21,50,000.00	1,17,50,000.00
DBS		1,22,50,000.00	3,42,51,158.00
FDR	8,31,91,000.00	16,07,92,697.00	23,37,78,857.00
SD	28,25,036.00	26,83,697.00	89,41,300.00
MIS		83,00,000.00	5,15,00,000.00
MDS		1,48,300.00	38,32,594.00
TOTAL DEPOSIT	49,79,37,264.71	71,31,18,084.56	90,10,75,050.29

Fig: Total Deposit of NBL (Bhaluka Branch)

Fig: Total Deposits of NBL (Bhaluka Branch)

Fig: Total A/C Holders of NBL (Bhaluka Branch)

FINDINGS OF THE REPORT:

After analyzing the annual report and other papers, the evolution of performance analysis and on the basis of my study I have got some findings about the National Bank Limited. These are mentioned below:

Ø  Accounts opening department is required to be well furnished with modern desk.

Ø  The customer service is very much impressive than other financial institution.

Ø  Special scheme like consumer credit scheme, monthly saving scheme, insurance scheme etc are very popular.

Ø  Sophisticate customer service scheme of the NBL more profitable to customers than other banks.

Ø  The overall working environment of the NBL is very much suitable for deposit mobilization.

Ø  Total deposits & A/C holders day to day increase by NBL in Bhaluka Branch.

Ø  The top management is more conscious about the liquidity of bank.

Ø  Not a proper skilled human resource in every department.

Ø  Inadequate workforce in new branches.

Ø  Lack of proper coordination among different department.

Ø  Inadequate facilities in maintaining the operation of ATM card, Master card, Visa card etc.

CHAPTER 04

RECOMMENDATIONS & CONCLUSIONS

RECOMMENDATIONS OF THE REPORT:

I have some points to focus which will help the bank to improve the efficiency as well as the quality of work. The points are as follows:

Ø  New investment schemes should be introduced to meet customer demands to stay ahead in competition & better satisfy customer requirements.

Ø  To make their record keeping easy & swift NBL can use fully computerized system.

Ø  NBL can attract more customers by providing more own ATM booth service.

Ø  In case of reliability customers are not satisfied. National Bank Limited should ensure that the customers are not only getting accurate information but also the promised service in the first & promised time so that customer can highly rely on our service.

Ø  HRD should focus on designing new courses to build organizational image & goodwill.

Ø  Management should set proper planning for its operations of each & every work for the whole bank as well as all branches of NBL.

Ø  As NBL is a service providing organization, it should introduce new & dynamic services to serve the people & capture the target market.

Ø  It is necessary to assign required qualified manpower for every job.

Ø  NBL should start online banking system extensively as soon as possible.

Ø  All branches should properly maintain all documents on daily basis.

Ø  It is required to develop some effective motivational programs.

CONCLUSIONS:

National Bank Limited has been trying to operate its business successfully since 1983. The bank has already developed good image and goodwill among its clients by offering excellent product & services. As an old Branch, NBL Bhaluka Branch is serving at its locality with supreme satisfaction of the customer. As a result, NBL Bhaluka Branch has to compete with those banks as well as other new established Commercial Banks. Today, the whole Banking sector is facing a tough competition and challenge. In this situation,  Bhaluka Branch is in commendable position than any other Bank of its locality and day-by-day they are increasing their activities & goodwill swiftly.

From the practical implementation of customer dealing procedure during the whole period of my practical orientation in National Bank Limited, I have reached a compact and solid conclusion in a extremely positive way. I believe that my realization will be in harmony with most of the banking thinkers. It is quite evident that to build up an effective and efficient banking system to the highest desire level computerized transaction is must.

In the above discussions we can see that NBL has both positives & negatives impacts in their services.  If they can overcome those problems immediately then they will take the superior positions in ranking of banking sector.  

From the learning and experience point of view I can say that I really enjoyed my internship at National Bank Limited, from the very first day. I am confident that this 03 (three) months internship program at National Bank limited, will extremely help me to realize my further carrier in the job market.

BIBLIOGRAPHY:

Ø  Annual report of 2011 of National Bank Limited.

Ø  Bank magazines.

Ø  Other short notes provide by the bank in different times.

Ø  www.nbl.com.bd.

Ø  en.wikipedia.org/wiki/Import

Ø  Web site of Bangladesh Bank.

Ø  www.bangladesh-bank.org

APPENDIX:

A/C                                         Account

SB                                           Savings Account

CD                                          Current Account

BB                                           Bangladesh Bank

DD                                          Demand Draft

IBC                                         Inward Bills for Collection

IBCA                                      Inter Branch Credit Advice

IBDA                                      Inter Branch Debit Advice

OBC                                        Outward Bills for Collection

PO                                           Payment Order

TIN                                         Tax Identification Number

TT                                            Telegraphic Transfer

STD                                         Short Term Deposit                                                                             FDR                                        Fixed deposit receipt

C & F                                      Clearing & Forwarding

IBCT                                       Inter Branch Credit Transaction

NMS                                       National Bank Monthly Scheme

MIS                                         Monthly Income Scheme

MDS                                       Millionaire Deposit Scheme

DBS                                        Double Benefit Scheme

SBS                                         School Banking Scheme

SWIFT                     Society for worldwide Interbank Financial Telecommunication

MT                                         Mail Transfer

EVP                                       Executive Vice President

SVP                                        Senior Vice President

SWOT                                    Strength Weakness Opportunities Threats.

ATM                                      Automated Teller Machine